TWTR - Rather Than Syndicate Twitter's $13 Billion in Debt Banks Are Paying the Transaction Themselves

October, 23 2022 08:52 AM Twitter Inc.

Twitter ( NYSE:TWTR )

The $13 billion in debt underpinning Elon Musk’s $44 billion acquisition of Twitter ( NYSE:TWTR ) will not be syndicated but kept by the banks who agreed to finance the transaction .

The banks reportedly decided to keep the debt on their books rather than sell it at a loss, according to a WSJ story citing individuals familiar with the matter. Morgan Stanley, Bank of America, and Barclays are the banks that are supporting the Twitter deal.

The report said that if the TWTR purchase goes through as planned on Friday, the banks plan to sell part of Twitter’s debt in the first quarter of 2019.

Following previous media reports that banks may lose about $500 million funding Elon Musk’s acquisition of TWTR, the WSJ has now claimed that the debt market has seized up. As it stands, it’s very doubtful that Twitter stock investors would choose to acquire the debt at the current market prices, even though the banks had promised to finance the acquisition regardless of whether or not they could sell the debt.

According to reports from earlier this month, the banks who underwrote the debt underpinning Citrix Systems’ $16.5 billion acquisition of Elliott and Vista Equity are together destined for $500 million in losses due to the debt being auctioned off at a discount.

Musk, CEO of Tesla, tweeted on Wednesday that he and other TWTR stock investors are “clearly overpaying.”

The banks supporting Twitter’s $13 billion debt arrangement will retain the debt rather than syndicate i...

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Company Name:	Twitter Inc.
Stock Symbol:	TWTR
Market:	NYSE
Website:	twitter.com